Gramm-Rudman-Hollings Act


Also found in: Financial, Acronyms.

Gramm-Rudman-Hollings Act,

officially the Balanced Budget and Emergency Deficit Control Act of 1985, U.S. budget deficit reduction measure. The law provided for automatic spending cuts to take effect if the president and Congress failed to reach established targets; the U.S. comptroller general was given the right to order spending cuts. Because the automatic cuts were declared unconstitutional, a revised version of the act was passed in 1987; it failed to result in reduced deficits. A 1990 revision of the act changed its focus from deficit reduction to spending control.
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The act, on which the final drafting was done under pressure to raise the federal debt limit to avoid default, is better known as the Gramm-Rudman-Hollings Act for its principal sponsors in Congress.